The Government of Uganda has struck a major financing deal with the African Export–Import Bank (Afrexim Bank), securing a €270 million (approximately UGX 1.1 trillion) loan to drive key infrastructure and development priorities under the 2024/25 financial year budget.
Finance Minister Matia Kasaija, announcing the agreement on Wednesday, August 20, said the 10-year facility will unlock funding for transformative projects ranging from agriculture value addition to oil and gas development, energy generation, and industrial expansion.
“The facility is targeted towards financing of investments in infrastructure and human capital development in the budget, to support sustainable growth and socioeconomic transformation,” Kasaija said.
The minister outlined priority areas for the loan, including the construction and maintenance of strategic road, rail, and port networks, strengthening energy transmission and distribution, and establishing export processing zones and industrial parks to stimulate trade.
Kasaija also hailed Afrexim Bank’s commitment to regional growth, describing it as proof that African institutions are rising to meet African development needs.
“This financing is an indication of the capacity of an African development financial institution like Afrexim Bank, among others, to support African strategies and development objectives. This is a clear demonstration of the Bank’s relevance to Uganda and the African continent, as well as an expression of its confidence in delivering solutions tailored to the requirements of its member countries.”
Beyond the loan, Uganda is also set to play host to Afrexim Bank’s new East African regional office, currently under construction along Yusuf Lule Road in Kampala’s central business district. The facility will include the Africa Trade Centre (AATC), a hub for regional operations and trade-related financing.
Kasaija welcomed the decision as a sign of the country’s growing stature in continental trade policy.
“These investments signify the Afrexim Bank’s strong confidence in the Government of Uganda and our shared vision of promoting trade and development in Africa.”
With this financing and the Kampala-based regional hub, analysts say Uganda is positioning itself not only to fast-track domestic development but also to cement its role as a strategic gateway for East African trade and investment.
